The High Court has upheld Bangladesh Bank’s appointment of an administrator to Nagad, dismissing legal challenges and confirming the central bank’s authority.
.jpg "Court Validates Bangladesh Bank’s Oversight of Nagad Amid Legal Challenge") |
| The High Court has dismissed challenges to Bangladesh Bank’s appointment of an administrator for Nagad, reinforcing regulatory oversight of the fintech sector. |
Dhaka, Bangladesh — February 16, 2025:
The High Court has upheld Bangladesh Bank’s decision to appoint an administrator to Nagad, rejecting legal challenges and reaffirming the central bank’s regulatory authority over the mobile financial service provider, reads a UNB online report.
The ruling was delivered by a bench comprising Justice Farah Mahbub and Justice Debashish Roy Chowdhury, who dismissed petitions questioning the legality of the administrator’s appointment. The court determined that the petitioners lacked legal standing, effectively validating Bangladesh Bank’s actions.
Bangladesh Bank appointed Muhammad Badiuzzaman Didar, Director of the Chattogram Postal Department, as administrator of Nagad on August 21 last year for a one-year term, leading to the dissolution of the company’s previous board. The move followed an inspection that uncovered irregularities in Nagad’s operations.
Challenging the decision, Nagad’s Executive Director Safayet Alam filed a writ petition at the High Court, arguing that the appointment was unlawful. In September, the court issued a rule asking why the decision should not be declared illegal, with authorities given 10 days to respond. A temporary stay was placed on the administrator’s activities in December.
Bangladesh Bank’s legal team, led by Attorney General Mohammad Asaduzzaman, argued that Nagad operates as an agent of the Post Office and that the postal authorities had been duly notified. The central bank defended the appointment as necessary to protect customer interests and ensure regulatory compliance.
Opposition lawyers contended that their clients had not been directly informed, but the court found that grievances should have been addressed through the Post Office, as Nagad functions under its jurisdiction.
Following the ruling, Bangladesh Bank spokesperson Mejbaul Haque reiterated that Nagad remains a postal service, and its management will continue under the central bank’s oversight. Meanwhile, petitioners’ lawyer Abul Kalam Khan Dawood stated that a decision on whether to appeal would be made after further consultation.